EU Targets Crypto Money Wallets And Banks In New Sanctions Package For Russia

JAKARTA - The European Union on Friday, April 8, targeted crypto wallets, banks, currencies and trusts in the fifth package of sanctions against Russia. This was done in an attempt to close a potential loophole that could allow Russia to move money overseas.

After Russia's invasion of Ukraine on February 24, EU-based crypto exchanges were already required to implement sanctions banning transactions from targeted individuals, but there are still concerns that loopholes to circumvent that remain.

The European Union on Friday said it was expanding its ban on deposits to crypto wallets. "This will contribute to closing a potential loophole," the EU European Commission executive said in a statement.

Crypto wallets allow individuals to store passwords that give them access to cryptocurrencies securely, and to send, receive, and spend cryptocurrencies such as bitcoin.

The European Union said it also banned the sale of banknotes and transferable securities, such as shares, in the official currencies of EU member states to Russia and Belarus.

The decision also confirmed a full transaction ban on four Russian banks, including VTB, which represents a 23% market share in the Russian banking sector.

Russian banks themselves have been cut off from the SWIFT international bank messaging system and will now be subject to an asset freeze to completely disconnect them from the EU market, the bloc said.

There is also a ban on advising on guardianship for wealthy Russians, to make it harder for them to keep their wealth in the EU.